NetEase, Inc.

OTCPK:NETT.F Stock Report

Market Cap: US$60.4b

NetEase Valuation

Is NETT.F undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NETT.F when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NETT.F ($18.78) is trading below our estimate of fair value ($31.16)

Significantly Below Fair Value: NETT.F is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NETT.F?

Key metric: As NETT.F is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NETT.F. This is calculated by dividing NETT.F's market cap by their current earnings.
What is NETT.F's PE Ratio?
PE Ratio16x
EarningsCN¥27.51b
Market CapCN¥439.91b

Price to Earnings Ratio vs Peers

How does NETT.F's PE Ratio compare to its peers?

The above table shows the PE ratio for NETT.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average48.9x
EA Electronic Arts
37.6x13.0%US$40.6b
SCPL SciPlay
20.9x8.7%US$2.9b
PLTK Playtika Holding
12.3x9.8%US$2.8b
SPOT Spotify Technology
124.8x29.7%US$95.9b
NETT.F NetEase
16x8.8%US$469.2b

Price-To-Earnings vs Peers: NETT.F is good value based on its Price-To-Earnings Ratio (16x) compared to the peer average (58.2x).

Price to Earnings Ratio vs Industry

How does NETT.F's PE Ratio compare vs other companies in the US Entertainment Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
DDI DoubleDown Interactive
4.6x0.3%US$551.03m
RDBX Redbox Entertainment
1.2x-121.8%US$76.65m
GMM Global Mofy AI
0.6xn/aUS$9.13m
MSGM Motorsport Games
0.7xn/aUS$3.63m
NETT.F 16.0xIndustry Avg. 17.7xNo. of Companies7PE020406080100+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NETT.F is good value based on its Price-To-Earnings Ratio (16x) compared to the US Entertainment industry average (18x).

Price to Earnings Ratio vs Fair Ratio

What is NETT.F's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NETT.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16x
Fair PE Ratio26.8x

Price-To-Earnings vs Fair Ratio: NETT.F is good value based on its Price-To-Earnings Ratio (16x) compared to the estimated Fair Price-To-Earnings Ratio (26.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NETT.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$18.78
US$22.38
+19.2%
13.7%US$31.27US$14.69n/a23
Dec ’25US$17.98
US$22.39
+24.5%
13.8%US$31.45US$14.78n/a23
Nov ’25US$15.08
US$23.04
+52.7%
14.5%US$31.63US$14.99n/a22
Oct ’25US$19.57
US$23.58
+20.5%
13.8%US$32.06US$15.19n/a23
Sep ’25US$16.27
US$23.65
+45.4%
13.5%US$31.79US$15.07n/a22
Aug ’25US$19.32
US$25.92
+34.2%
11.3%US$31.47US$17.15n/a22
Jul ’25US$19.43
US$26.02
+33.9%
10.9%US$31.40US$17.11n/a23
Jun ’25US$17.74
US$26.09
+47.0%
10.5%US$31.54US$17.18n/a24
May ’25US$19.30
US$26.73
+38.5%
9.7%US$31.83US$16.90n/a24
Apr ’25US$21.21
US$26.79
+26.3%
9.6%US$31.66US$16.92n/a24
Mar ’25US$22.20
US$26.90
+21.2%
10.2%US$31.80US$16.42n/a23
Feb ’25US$20.32
US$26.98
+32.8%
10.8%US$34.57US$16.55n/a24
Jan ’25US$18.26
US$26.75
+46.5%
13.4%US$34.73US$16.63n/a24
Dec ’24US$22.05
US$26.98
+22.4%
10.9%US$34.52US$16.66US$17.9825
Nov ’24US$20.92
US$24.03
+14.9%
12.1%US$30.10US$13.95US$15.0823
Oct ’24US$20.72
US$24.01
+15.9%
12.0%US$30.18US$13.99US$19.5723
Sep ’24US$21.65
US$24.17
+11.7%
12.2%US$30.23US$13.72US$16.2724
Aug ’24US$22.34
US$23.53
+5.3%
12.3%US$30.73US$13.99US$19.3224
Jul ’24US$19.72
US$22.44
+13.8%
12.8%US$30.30US$13.79US$19.4325
Jun ’24US$16.67
US$22.45
+34.6%
15.0%US$30.90US$11.21US$17.7425
May ’24US$17.85
US$21.45
+20.2%
14.6%US$27.64US$11.50US$19.3025
Apr ’24US$17.80
US$21.26
+19.4%
15.1%US$27.84US$11.58US$21.2125
Mar ’24US$16.15
US$21.28
+31.8%
15.1%US$27.87US$11.60US$22.2025
Feb ’24US$18.20
US$21.86
+20.1%
18.7%US$29.37US$12.24US$20.3224
Jan ’24US$14.94
US$21.15
+41.6%
18.8%US$28.49US$11.87US$18.2626
Dec ’23US$13.56
US$20.48
+51.0%
18.7%US$27.52US$11.47US$22.0526

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/18 11:59
End of Day Share Price 2024/12/18 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

NetEase, Inc. is covered by 92 analysts. 34 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Sau Shing ChowABCI Securities Company Limited
Zixiao YangArete Research Services LLP
Tianxiao HouAuriga USA LLC